Strategies to Help Avoid Common Errors on the SEFA

The Schedule of Expenditures of Federal Awards (SEFA) is an important document used by federal and state granting agencies to help verify their funding (or pass-through funding) is accounted for properly and included in single audits of non-federal agencies.

The SEFA must include specific elements as outlined in the Uniform Guidance (UG), specifically the Code of Federal Regulations (CFR) 200.502 and 200.510.

10 common errors on the SEFA

Explore some common errors found in SEFA reporting, which is a critical part of federal grant compliance and audit preparation:

1. Reporting revenues instead of expenditures

It’s a Schedule of Expenditures of Federal Awards. Expenditures should be reported, not revenues.

2. Missing totals by program

While individual federal programs should be listed, the SEFA should provide totals for each program and Assistance Listing Number.

3. Failure to report non-cash awards

Items like commodities, equipment, or vehicles received as part of a grant should be recorded as both revenue and expenditure in the financial statements, and if federal, should be reported on the SEFA.

4. Omitting cluster totals

UG dictates certain Assistance Listing Numbers are combined into a cluster. The SEFA should include a total for any cluster. Clusters can be found in the OMB Compliance Supplement or at SAM.gov. Consult the most current guidance, as clusters can change annually.

5. No subrecipient information

If your organization passes federal funds to subrecipients, the total amount provided to each subrecipient must be reported by program.

6. Incorrectly including pass-through IDs on direct awards

If an award is received directly from a federal agency, it should not include a pass-through identification number. Including one creates conflicting information.

7. Incomplete expenditures

Omitting programs or expenditures can lead to incorrect audit testing and raise concerns with granting agencies. Completeness procedures should be performed each year on the SEFA to verify all expenditures are included.

8. Wrong assistance listing number

The first two digits of the five-digit assistance listing number (formerly CFDA number) indicates the federal agency; the last three digits identify the specific program with that agency. Always verify assistance listing numbers against grant agreements, the compliance supplement, or SAM.gov.

9. Pass-through entity information excluded

Federal awards are often passed through as subawards to a subrecipient. Related to these awards, the SEFA should include the name of the pass-through entity and identifying number assigned by the pass-through entity. If no pass-through entity number is found/available, consider noting “not available” in this column on the SEFA to clarify it was considered.

10. No “notes to SEFA”

Notes to the SEFA are required to describe the significant accounting policies used in preparing the schedule and whether the auditee elected to use the de minimis indirect cost rate of up to 15% (previously 10%). Also, a legend should be included on the SEFA to guide users to the note section.

How CLA can help avoid SEFA errors

Strong internal controls over SEFA preparation include a thorough review of the SEFA by someone other than the preparer. Develop and use a checklist to verify the SEFA is complete and accurate and to document the review process.

Our grant compliance and grant management professionals can help you identify SEFA requirements and develop procedures to help reduce the risk of errors and noncompliance.

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